Indonesia - Certain Measures Affecting the Automobile Industry

Report of the Panel

On 3 October 1996, the EC requested consultations with Indonesia, on 4 October 1996 and 29 November 1996, Japan requested consultations with Indonesia, and on 8 October 1996, the US requested consultations with Indonesia concerning Indonesia’s National Car Programme. The EC alleged that the exemption from customs duties and luxury taxes on imports of “national vehicles” and components thereof, and related measures were in violation of Indonesia’s obligations under Articles I and III of GATT 1994, Article 2 of the TRIMs Agreement and Article 3 of the SCM Agreement. Japan contended that these measures were in violation of Indonesia’s obligations under Articles I:1, III:2, III:4 and X:3(a) of GATT 1994, as well as Articles 2 and 5.4 of the TRIMs Agreement. The US contended that the measures were in violation of Indonesia’s obligations under Article I and III of GATT 1994, Article 2 of the TRIMs Agreement, Article 3, 6 and 28 of the SCM Agreement and Articles 3, 20 and 65 of the TRIPS Agreement.

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